1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. TechnoPro Holdings, Inc.
  6. News
  7. Summary
    6028   JP3545240008

TECHNOPRO HOLDINGS, INC.

(6028)
  Report
Delayed Japan Exchange  -  11:32 2022-08-15 pm EDT
3365.00 JPY   +0.45%
08/08TRANSCRIPT : TechnoPro Holdings, Inc., 2022 Earnings Call, Aug 08, 2022
CI
08/08TechnoPro Holdings to Seek M&A
CI
05/02TechnoPro Holdings Logs Higher Profit, Revenue in Nine Months to March
MT
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

TechnoPro : Summary of the Consolidated Third Quarter Statements (IFRS) for the Nine-Month Period Ended March 31, 2022

04/28/2022 | 02:04am EDT

Translation

Notice: This is a translation of the original Japanese document and is provided for informational purposes only. If there are any discrepancies between this and the original, the original Japanese document prevails.

Summary of the Consolidated Third Quarter Statements (IFRS)

for the Nine-Month Period Ended March 31, 2022

April 28, 2022

Listed Company Name TSE Code RepresentativeTechnoPro Holdings, Inc.

Listed Stock Exchange: Tokyo

6028 URLhttps://www.technoproholdings.com/en/

(Title) President, Representative Director & CEO (Name) Takeshi Yagi

In charge of inquiries

(Title) Managing Director & CFO (Name) Toshihiro Hagiwara TEL 03-6385-7998

Quarterly report scheduled submission date

May 12, 2022

Scheduled commencement date for dividend payment

Supplementary materials for financial results:

Yes

Briefing session for financial results:

Yes (for institutional investors and analysts)

(Amounts less than one million yen are omitted)

1. Consolidated Financial Results for the Nine Months Ended March 31, 2022 (July 1, 2021 - March 31, 2022)

(1) Consolidated Operating Results (Cumulative)

(% represents the change from the same period of the previous fiscal year)

Net profitRevenueCore operating profit

Operating profit

Profit before income taxesNet profitattributable to owners of the parent company

For the nine months ended March 31, 2022

For the nine months ended March 31, 2021

Million yen 131,712 120,181

% 9.6

0.6

Million yen 14,446 13,186

%

Million yen

%

Million yen

%

Million yen

9.6 16,522 2.6 14,879

11.0 16,777 13.8 14,902

12.6 12,247 13.9 10,357

% 18.2

13.9

Million yen 12,077 10,249

% 17.8

14.1

Comprehensive income for the period

Basic earnings per share

Diluted earnings per share

For the nine months ended March 31, 2022

For the nine months ended March 31, 2021

Million yen 13,626 11,398

% 19.5

38.7

Yen 112.11 95.15

Yen

- -

Yen

(Note) Core operating profit is the Group's own profit indicator, calculated by subtracting selling, general and administrative expenses from gross profit, and accordingly excludes the impact of extraordinary items (such as employment adjustment subsidies and impairment losses) recorded under other income and other expenses.

(Note) The Group conducted a three-for-one split of ordinary shares on July 1, 2021. "Basic earnings per share" is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated Financial Position

Total assets

Total equity

Equity attributable to the owners of the parent company

Percentage of equity attributable to the owners of the parent company

For the nine months ended March 31, 2022

FY ended June 30, 2021

Million yen

135,568 117,989

Million yen

65,508 58,733

Million yen

63,976 57,226

% 47.2

48.5

2. Dividends

Annual dividends per share

End of first quarter

End of second quarter

End of third quarter

End of fiscal year

Total

FY ended June 30, 2021

FY ending June 30, 2022

Yen - -

Yen 50.00 20.00

Yen - -

Yen 135.00

Yen 185.00

FY ending June 30, 2022 (forecast)

42.00

62.00

(Note) Revisions to dividend forecasts published most recently: None

(Note) The Group conducted a three-for-one split of ordinary shares on July 1, 2021. Actual dividend amounts before the stock split are stated for FY ended June 30, 2021.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 - June 30, 2022)

(% represents the change from the same period of the previous year)

Revenue

Core operating profit

Operating profit

Profit before income taxes

Net profit attributable to owners of the parent company

Basic earnings per share

Full year

Million yen 174,000

% 7.9

Million yen 17,300

% (1.9)

Million yen 19,300

% (0.8)

Million yen 19,300

% (0.9)

Million yen 13,300

% 0.4

Yen 123.46

(Note) Revisions to financial results forecasts published most recently: None

  • * Notes

    • (1) Changes to important subsidiaries during the period (changes to "Specified Subsidiaries" that involve changes made to scope of consolidation): None

    • (2) Changes to accounting policies and accounting estimates

      • i. Changes to accounting policies as required by IFRS: None

      • ii. Changes to accounting policies other than i.: None

      • iii. Changes to accounting estimates: None

    • (3) Number of outstanding shares (ordinary shares)

      • i. Number of outstanding shares at the end of the period (including treasury shares)

      • ii. Number of treasury shares at the end of the period

      • iii. Average number of shares during the period (cumulative)

      As of March 31, 2022

      108,421,164 shares

      FY ended June 30, 2021

      108,421,164 shares

      As of March 31, 2022

      695,291 shares

      FY ended June 30, 2021

      695,109 shares

      For the nine months ended March 31, 2022

      107,725,922 shares

      For the nine months ended March 31, 2021

      107,726,092 shares

      (Note) The Group conducted a three-for-one split of ordinary shares on July 1, 2021. Number of outstanding shares at the end of the period (including treasury shares), Number of treasury shares at the end of the period, and Average number of shares during the period (cumulative) are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

  • * This Summary of Financial Statements is not subject to quarterly review by certified public accountant or audit corporation.

  • * Explanation regarding proper use of financial results forecasts, and other notes

(Cautionary note on forward-looking statements)

Forward-looking statements in this document about future performance are based on information currently available and certain assumptions that are considered reasonable. Due to unforeseen circumstances, actual results may differ from such estimates.

Please refer to page 5 "1. Qualitative Information on Financial Results for the Period Under Review; (3) Results forecasts and other forward-looking information" for criteria for assumptions used in the earnings forecast.

(Obtaining supplementary materials for financial results)

The Company plans to hold a briefing on business results for institutional investors and analysts on April 28, 2022. The Company plans to post supplementary and other materials for the briefing on its website today (April 28, 2022) at the same time that the information is disclosed to the Tokyo Stock Exchange.

Contents

1. Qualitative Information on Financial Results for the Period Under Review 2

(1) Summary of business performance 2

(2) Summary of financial position 4

(3) Results forecasts and other forward-looking information 5

2. Interim Consolidated Financial Statements (Summary) and notes 6

(1) Consolidated Statement of Financial Position (Summary) 6

(2) Consolidated Statement of Income (Summary) and Consolidated Statement of Comprehensive Income 8

(Summary)

(3) Consolidated Statement of Changes in Equity (Summary) 12

(4) Consolidated Statement of Cash Flows (Summary) 14

(5) Notes to the consolidated financial results (Summary) 15

(Note on assumption about going concern) 15

(Note on segment information) 15

1. Qualitative Information on Financial Results for the Period Under Review

(1) Summary of business performance

During the consolidated third quarter period under review (July 1, 2021 to March 31, 2022), uncertainty in the global economy continued due to concerns over inflation including rising resource prices, the sluggish Chinese economy, tension toward the situation in Ukraine, and other factors. In Japan, despite signs for a time that the COVID-19 pandemic may be coming to an end, uncertainty continued due to a rebound in infections as a result of the new omicron variant, shortages of semiconductor components and other goods, and the rapid weakening of the yen, among other factors.

In this environment, customer demand for the Group's core business area of engineer dispatching and contract assignment has largely recovered to pre-pandemic levels, demonstrating the strong foundations of the Group's business. In addition, hiring activities have proceeded as planned, and the Group made a good start towards achieving Evolution 2026, its new medium-term management plan (July 1, 2021 to June 30, 2026), which it launched on August 10, 2021.

The main initiatives implemented by the Group during the third quarter period under review were as follows:

Secure engineers

The resumption of hiring activities in September 2020 and the focus on forming a candidate applicant pool lead to an increase in the number of engineers on payroll in Japan that began in April 2021. While online interviews have now become the norm, by continuing to provide sufficient information and engaging in careful communication with candidates, the Group has successfully hired 2,206 mid-career engineers in the third quarter period under review (up 1,742 compared to same period of the previous fiscal year). In addition, the Group successfully hired 851 new graduate engineers in April 2022 and expects the number of engineers on payroll in Japan to be at a record high at the end of April 2022. The Group will continue to focus on hiring new IT and DX-related engineers to meet strong demand, and also continue its efforts to curb retirements to secure a sufficient number of engineers - the source of our growth.

Strengthen solutions business

One of the goals set out in Evolution 2026, the Group's medium-term management plan, is to strengthen the solution business as a result of the growth and evolution of the Group's core business area of engineer dispatching. GCOMNET CO., LTD. became part of the Group on July 30, 2021 (merging with TechnoPro, Inc. on October 1, 2021). The Group is leveraging GCOMNET's strengths in the upstream process of core system ERP package SAP implementation consulting and IT infrastructure development and has implemented GCOMNET's training expertise into the Company's engineer training program. Further, the Group has expanded the scope of technologies covered by training programs with alliance businesses and strengthened the training for engineers to add digital skills to engineers' existing skills, like chemicals/biotechnology and construction. As an example of the combination of construction and IT/digital solutions, the Group collaborated with Liberaware Co., Ltd. on the use of IBIS, a small drone for the indoor inspection of facilities, to meet broad demand for inspections of dangerous places for manual operation, such as confined, dark, or high-altitude spaces.

The Group will continue to expand its solutions offering to customers through these initiatives.

Promote globalization

To promote globalization within the Group, the Group has begun operating a "service catalogue" that showcases the track records and capability areas of its domestic and overseas subsidiaries. The aim of this initiative is to acquire offshore development projects by utilizing the robust sales network of the Group's domestic businesses. The Group will continue to actively promote groupwide collaboration on a global basis, leveraging the Group's strengths in domestic sales and offshore development and delivery.

As a result of the initiatives described above, the number of domestic engineers at the end of the consolidated third quarter period under review was 21,054 (up 1,105 compared to the end of the third quarter of the previous fiscal year and up 724 from the end of previous fiscal year). The average utilization rate for the period under review was

2

95.7% (up 1.2 pts compared to the same period of the previous fiscal year). Regarding the Group's continued efforts to improve sales per engineer, while the number of operating days per month has decreased by 0.18 days compared to the same period of the previous fiscal year, average monthly sales per engineer were 657 thousand yen (up 25 thousand yen compared to the same period of the previous fiscal year), due to increased overtime hours and the increase in contract unit prices as a result of the Shift Up and Charge Up initiatives and further expansion in the solutions business, among other factors. Further, excluding new employees who had joined the Group in the last twelve months, dispatch contract unit prices (base charge) for existing employees rose by 10 thousand yen compared to the same period of the previous fiscal year.

In terms of expenses, in comparison to the third quarter of the previous fiscal year when new hiring was effectively frozen for the consolidated first half period of the previous fiscal year, SG&A increased due to full-scale implementation of hiring and other upfront investments. However, core operating profit rose by 1,260 million yen, due to the improvement in gross profit as a result of the increased number of employees assigned in Japan and other factors.

As a result, the Group's performance was as follows: revenue for the consolidated third quarter under review was 131,712 million yen (up 9.6% compared to the same period of the previous fiscal year), core operating profit was 14,446 million yen (up 9.6%), operating profit was 16,522 million yen (up 11.0%), profit before taxes was 16,777 million yen (up 12.6%), and net profit attributable to the owners of the parent company was 12,077 million yen (up 17.8%).

Earnings for the segments of the business during the consolidated third quarter period under review were as follows:

(R&D Outsourcing)

In order to expand its IT business, which has been performing well within R&D Outsourcing, the Group implemented software-related training for hardware-related engineers and chemical/biochemical-related engineers and implemented initiatives to respond to strong demand in the digital domain through re-skilling and cross-skilling, in addition to strengthening the mid-career hiring mainly of high added-value engineers. The Group also made efforts to secure assignments at higher unit prices through business collaborations with the partners possessing advanced technologies, actively implementing internal/external training, and by increasing the quality and diversity of its service offering. As a result of these efforts, engineers on payroll at the end of the consolidated third quarter period under review were 18,356 (up 988 compared to the end of the third quarter of the previous fiscal year) and assigned engineers were 17,555 (up 852). As a result of these initiatives, revenue in this segment was 101,554 million yen (up 6.4%).

(Construction Management Outsourcing)

In addition to construction management, the main service provided under Construction Management Outsourcing, the Group has also expanded its services to offer services based on technological skills developed in the design and construction management fields, for example: 3D measurement, aerial photography, and inspections using drones, and the establishment of first-class qualified architect offices. In this segment the impact of COVID-19 has been minimal and so a high utilization rate has been maintained. On payroll and assigned engineers are 2,698 and 2,598, respectively, at the end of the third quarter period under review (up 117 and 101, respectively, compared to the end of the same period of the previous fiscal year). As a result, revenue in this segment was 15,213 million yen (up 2.5%).

(Other Businesses in Japan)

Other Businesses in Japan comprises a professional recruitment service and an education and training service in engineering. These businesses were impacted by COVID-19, but there was continued demand for search-based recruitment services from our professional recruitment service as a result of clients' strengthening desire to hire to prepare for post-COVID-19. As a result, revenue in this segment was 3,346 million yen (up 24.2%).

(Overseas Businesses)

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

TechnoPro Holdings Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 06:03:04 UTC.


© Publicnow 2022
All news about TECHNOPRO HOLDINGS, INC.
08/08TRANSCRIPT : TechnoPro Holdings, Inc., 2022 Earnings Call, Aug 08, 2022
CI
08/08TechnoPro Holdings to Seek M&A
CI
05/02TechnoPro Holdings Logs Higher Profit, Revenue in Nine Months to March
MT
04/28TRANSCRIPT : TechnoPro Holdings, Inc., Q3 2022 Earnings Call, Apr 28, 2022
CI
04/28TECHNOPRO : Summary of the Consolidated Third Quarter Statements (IFRS) for the Nine-Month..
PU
04/28TECHNOPRO : FY2022 Q3 Financial Results Slide Presentation
PU
03/30TechnoPro Inks Partnership Agreement with Women-Empowering Non-profit Organization
MT
02/02TechnoPro Holdings Logs Higher Profit, Revenue in Six Months to December 2021
MT
02/01TRANSCRIPT : TechnoPro Holdings, Inc., Q2 2022 Earnings Call, Feb 01, 2022
CI
02/01TECHNOPRO : Summary of the Consolidated Second Quarter Statements (IFRS) for the Six-Month..
PU
More news
Financials
Sales 2022 176 B 1 320 M 1 320 M
Net income 2022 13 678 M 103 M 103 M
Net cash 2022 20 276 M 152 M 152 M
P/E ratio 2022 26,4x
Yield 2022 1,83%
Capitalization 361 B 2 712 M 2 712 M
EV / Sales 2022 1,94x
EV / Sales 2023 1,73x
Nbr of Employees 21 692
Free-Float 99,4%
Chart TECHNOPRO HOLDINGS, INC.
Duration : Period :
TechnoPro Holdings, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TECHNOPRO HOLDINGS, INC.
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 7
Last Close Price 3 350,00 JPY
Average target price 3 650,00 JPY
Spread / Average Target 8,96%
EPS Revisions
Managers and Directors
Takeshi Yagi President, CEO & Representative Director
Toshihiro Hagiwara Chief Financial Officer & Director
Yasuji Nishio CFO & Managing Director
Toshiyuki Adachi Executive Officer & Head-Information Systems
Gaku Shimaoka COO, Representative Director & Vice President
Sector and Competitors
1st jan.Capi. (M$)
TECHNOPRO HOLDINGS, INC.-2.15%2 754
RECRUIT HOLDINGS CO., LTD-25.67%62 436
PAYCHEX, INC.1.21%48 807
TRINET GROUP, INC.-3.45%5 680
BENEFIT ONE INC.-54.63%2 654
SMS CO., LTD.-24.61%2 228